The Merchandise Costing Method That Matches the Most Current Cost

question 43

Multiple Choice

The merchandise costing method that matches the most current cost of items purchased against the current sales revenue is called the

• A) last-in, first-out method.
• B) first-in, first-out method.
• C) specific identification method.
• D) weighted-average method.

---

Definitions:

Foreign Currency

Currency used in a country other than the home country of the business entity, often involved in international transactions.

Foreign Exchange Gain

A profit resulting from changes in exchange rates when foreign currency holdings are valued at the current exchange rate.

Exchange Rates

The rate at which one currency can be exchanged for another, defining the relative value between two currencies.

Forward Rate

A term used in finance to describe the future exchange rate agreed upon in a forward contract, or the future interest rates as implied by the yield curve.